Nigeria ranks second among top 10 African countries with highest number of AI firms

The evolution of Artificial Intelligence in Africa is a testament to the continent’s growing technological prowess. In 2024, Nigeria emerged as the second among the top 10 African countries with the highest number of AI firms, representing a leading hub for technology innovations.

According to the Centre of Intellectual Property and Information Technology Law, an evidence-based research and training centre in Kenya, there are about 2,400 AI firms in Africa with 40 per cent being startups.

“African countries have begun to see the potential for AI in their economies as it subsequently impacts all areas of socio-economic development like banking, marketing, entertainment, education, agriculture, and health,” it said.

However, Nigeria being a home for the tech ecosystem has caught the attention of GITEX, the world’s largest tech show debuted in Africa at Marrakech, Morocco.

The Dubai World Trade Centre through GITEX is set to open up new investment opportunities in Nigeria by 2025, bringing global investors to explore opportunities in the booming Nigerian startup scene, the largest in Africa.

Read also: Top 10 African countries advancing for AI readiness in 2024 – IMF

The growing interest in AI developments in Nigeria has been driven by the adoption from big tech companies like Google, Microsoft, Flutterwave, Interswitch, and also tech start-ups, influencing its socio-economic sectors like banking, marketing, entertainment, education, agriculture, and health and driving tech investors into the country.

According to the Centre of Intellectual Property and Information Technology Law, here are 10 African countries with AI firms in 2024

1. South Africa:

South Africa, Africa’s largest economy, ranked the first African country with over 600 Artificial Intelligence firms in 2024. The government has been positioned as a leader in AI innovations with the National Artificial Intelligence Policy Framework, witnessing significant growth in AI-driven start-ups and organisations.

2. Nigeria:

Nigeria, the most populous country in Africa, ranks second with over 400 AI firms and startups in 2024. The country has a robust tech foundation that has positioned it as the leading hub for technological advancement and has attracted global investors like the Dubai World Trade Centre to host GITEX in Nigeria by 2025.

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3. Egypt:

Egypt’s interest in Artificial Intelligence activities started in 2019 and it now has over 200 AI start-ups in 2024. With its strategic location and large population, the surge in AI systems advanced across healthcare, education, and e-commerce sectors.

4. Kenya:

Kenya has positioned itself as a tech powerhouse in Africa as the country with leading mobile money and fintech innovations. It has been harnessing AI technology to address critical needs in agriculture, healthcare, education, and financial services, through strategic government-led initiatives.

Read also: Artificial Intelligence in Nigeria: How ready are we?

5. Morocco:

Morocco is actively embracing AI technology integrations into various sectors and global investors particularly when GITEX was held in Marrakech, Morocco in 2023. The increasing number of AI firms in 2024 recognises the potential of AI-driven systems in the country.

6. Ghana:

Ghana’s tech ecosystem is evolving as AI companies are addressing economic challenges in the agriculture, healthcare, and education sectors. The country has been developing AI-powered services for financial services, farming practices, disease diagnosis, and cybersecurity solutions.

Read also: Gen AI may not be a profitable venture — Experts

7. Tunisia:

The North African country has been focusing on the practical application of Artificial Intelligence by supporting tech startups with AI-powered systems for healthcare solutions, machine learning, and tutoring systems.

8. Cameroon:

Cameroon, while not as prominent as Nigeria in the AI landscape, is actively exploring and implementing AI technologies. However, the country faces challenges in the adoption of AI, including a lack of skilled professionals, limited access to data, and infrastructure constraints. Despite these challenges, the country has the potential to become a significant player in the African AI landscape, especially with continued investment in education, research, and innovation.

Read also: Gen AI may not be a profitable venture — Experts

9. Tanzania:

Tanzania is actively embracing AI technology and has seen a rise in AI startups and initiatives. While Tanzania’s AI ecosystem is still in its early stages, it has the potential to drive significant economic growth and societal development.

10. Uganda:

Uganda is an emerging AI hub in East Africa leveraging AI in its energy, agriculture, and education sectors. Most Ugandan companies are working on supporting rural communities by improving agricultural productivity and developing mobile applications for swift communications.